To increase growth, a company can increase its growth rate by taking goods or services developed at home and selling them internationally. Almost all multinationals started out doing just this. Automobile companies such as Volkswagen and Toyota also grew by developing products at home and then selling them in international markets.
The success of many multinational companies that expand in this manner is based not just upon the type of goods and services they sell in foreign nations, but also upon the firm’s core competencies (skills within the firm that competitors cannot easily match or imitate).
Core competence refers to skills within the firm that competitors cannot easily match or imitate. These skills
Enable the firm to reduce the costs of value creation
Create perceived value so that premium pricing is possible
Example, Toyota has a core competence in the production of cars. It is able to produce high-quality, well-designed cars at a lower delivered cost than any other firm in the world